KUCHING: The state’s wooden furniture industry recorded an increase of 53 per cent in export to RM29.9 million in the period of January to September last year, compared to RM19.6 million recorded in the same period of 2013.
Despite the strong showing, wooden furniture export still contributed less than one per cent of the total timber export earnings, said Minister for Industrial Development Datuk Amar Awang Tengah Ali Hassan.
Awang Tengah who is also chairman of Sarawak Timber Industry Development Corporation (STIDC) and Second Minister for Resource Planning and Environment has urged local furniture manufacturers to collaborate with big timber companies to enhance their performance.
“The global demand for furniture is vast. Among the countries that have huge market potential for furniture exports are the United States, Japan and India. Worldwide furniture shipments to the United States in 2013 was about US$20 billion, while India furniture market is worth US$8 billion, growing at a rate of 30 per cent annually.
“The local furniture manufacturers are urged to move forward in tandem with the government efforts in developing the furniture industry to achieve its global position by 2030. I urge local furniture manufacturers to collaborate with the big timber companies in order to enhance their performance,” he said when officiating at the launching of the Sarawak Timber & SMEs Expo 2015’s website at d’Galeri Pusaka here yesterday.
Also present were Assistant Minister for Industrial Development (Investment and Promotion) Datuk Julaihi Narawi, Assistant Minister of Environment Datu Len Talif Salleh, STIDC acting general manager Hashim Bojet and Saratim general manager Dato Patrick Liew.
Awang Tengah said currently, there is a lack of major anchor companies in furniture manufacturing in the state which hampers the government’s effort to upgrade the state’s furniture industry.
To address this problem he disclosed that STIDC would work with timber companies to build the anchor companies.
“STIDC and Samling Housing Products Sdn Bhd had signed an MoU (memorandum of understanding) in July 2014, which will be able to lead the development of the furniture industry towards producing Acacia furniture for the global market with a vision to make Sarawak the Hub of Acacia Furniture in the future.
“STIDC had conducted SME Study (small and medium enterprises) in 2013 and the report has been finalised. The report has identified the critical path of the SMEs industry indicating the absence of the anchor company in the manufacturing of furniture,” he continued.
Touching on the overall performance of the timber industry, Awang Tengah said the industry will continue to become one of the significant contributors to the state socio-economic growth.
Export earnings last year totaled at RM7.3 billion, an increase of 1.3 per cent compared to its performance the in previous year.
Major products exported from the state in 2014 were plywood at 53.4 per cent, logs (27.8 per cent), sawn timber (8.2 per cent), MDF (medium-density fibreboard) at 3.3 per cent and veneer (2.8 per cent). The main markets were Japan, India, Taiwan and Korea.